Sure we can talk about all the homebuyer advice under the sun, from a real estate agent. It’s quite different from real people that are not in the business. I can tell you all of the things I wish you knew, but that’s from my perspective; it means so much more coming from real home buyers that have dealt with issues and problems and have learned from them.

A friend of mine recently posted on Facebook a great question asking homeowners what they wish they knew about buying a property. They gave some very honest and candid answers that I’d like to share with you here.

A buyer so they got so caught up in getting the house that they ended up settling for house they really didn’t want.

Don’t get so caught up in a bidding war or a negotiation back and forth before stepping back and realizing do I really want this house?

Another buyer talked about getting a second opinion on the inspection.

Yes, inspections can be costly but it could be a lot more costly repairing something after the fact that just getting an inspection to begin with to realize what needs to happen.

A buyer asked for a home warranty or some sort of insurance to cover appliances, heating and cooling systems and electricity.

A home warranty is a great investment for sellers and a good incentive to draw buyers in. It gives buyers the confidence that most of the property is in good working condition and if something isn’t, it will be covered for up to one year after purchase.

Buyers need to realize that they shouldn’t make large purchases or get a credit card before the close on the house. This is extremely important especially if you are financing the property.

Another real estate agent chimed in on the post and talked about a buyer that had to explain why there was a deposit for $600 from his dad three years earlier. She thinks that it happened because the buyer applied for a furniture store credit card two days before closing. The mortgage company scrutinized this borrower and asked a ton of questions. Anything you do that could put your financial future at risk is going to be a red flag to lenders.

Another buyer regretted not researching all the forms, reports, inspections and other documents before signing.

They didn’t get all the information and the simply trusted the sellers on septic reports and other electrical systems. Unfortunately, because of this, they had to pay $12,000 in septic system repairs after they closed on the property, all out of their own pocket.

I was surprised to see the one buyer didn’t even realize they were buying a mobile home.

If a home is financed, the mortgage lender needs to have different documents for a mobile home versus a single detached house. The buyer was so caught up in the landscape around the house that she didn’t realize she was buying a mobile home.

A buyer talked about the possibilities of neighborhood issues being a problem after you move in. The neighborhood could have a certain stigma with crazy neighbors, bad dogs in the area, loud noise from roads or railroad tracks close by, high probability of sinkholes or even sex offenders living in the neighborhood.

It’s important to research the neighborhood as well as the house itself.

Thank you to all that contributed. It was a great way to really get a sense of what buyers feel after buying. Be prepared. Do your research or ask your real estate agent to help with the research so you can be glad you bought and enjoy your home for years to come.

How do I know I’m getting a good real estate deal?

When buying a home, the perfect home may be a dream, but there are some things to look for to know whether or not you’ve made or are going to make a good purchase. Check out these 4 things when looking for a house to know you’ve got a great deal.

#1. Price.

Price is the number one factor when determining a deal. Regardless of what the home looks like, if it is priced correctly for its condition, location and size, you know whether or not is overpriced or underpriced or at market value. If you are unsure, your real estate agent should be able to tell you whether or not it is priced correctly. An amateur real estate agent, one that does it part-time, or a brand-new agent, may not know whether or not a home is priced correctly. Agents that are very familiar with local communities, neighborhoods, and subdivisions will be able to tell you if the home is priced correctly, overpriced or under market value. Once you know your price range in which to search, your real estate agent should be able to present you with homes within that price range and pick out those that are a good deal.

#2. Features.

A good deal has to have the features that you are looking for in a home. It might be priced correctly but if the home does not offer the features you are looking for, it’s not a good deal to you. Coupling the price with the features that you want naturally are the components that make up a good deal. If the home has the right number of bedrooms and bathrooms that you are looking for, features such as an open design, backyard, or the letters that you want and it’s priced correctly, you’re probably getting a good deal for you.

#3. Condition.

There were two similar homes within the same neighborhood priced $40,000 different from each other. The higher-priced house had a few extra landscaping features but the size, condition, and location were all fairly the same. The home priced $40,000 less sold within a week. If the same buyer were looking at homes, naturally the lower priced home would’ve been the better deal.

Condition means the state of repairs that the home needs. There’s usually fixer-upper, fair, average, good, and excellent conditions. Excellent conditions would be primarily for new construction homes or brand-new remodels. Many homes are in good condition so other factors would need to play a role as to whether or not it’s a good deal. If the home is fair or is in a fixer situation, the home would need to be priced adequately for it to be a good deal and then again, the buyer would need to want this type of home as well.

#4. Location.

We’ve always heard the phrase location, location, location. But this really is true when looking for a good deal. Are you looking for a home in the neighborhood with a community, gated subdivision, a view, waterfront or oceanfront, close proximity to work or schools? All of these location factors will play a role in conjunction with condition, price and features. If the location works with the price and it’s in the condition you want with the features you need, you obviously are getting a good deal.

For more details on getting a good deal in Sunset Beach and surrounding communities and oceanfront towns in North Carolina give us a call today.

Buying a house is exciting, yet most people don’t do enough research on the process before jumping in. The inspection is a crucial part of the home-buying process but in hot markets, many buyers are waiving the inspection altogether. While we don’t advocate this, we do understand it in some situations. Hot markets where homes go fast may warrant a home inspection waiver. But, nevertheless, when buying you should verify certain things are inspected and checked, even by yourself, if for no other reason, your peace of mind.

Some of the most common items home inspectors will check is:

Heating and cooling systems

Roof

Foundation

Electrical

Plumbing

Chimney or fireplace

Windows

Doors

Skylights

Pest inspection

Sewer or Septic

Remember, home inspectors are not experts on all these things but they do know a little about everything. If they suggest an additional inspection you might consider it carefully. It may be more expensive but it could save you thousands in the long run.

Some areas where inspectors may not check are the following:

Mold – Just about every home has some type or level of mold. Most is nothing to worry about. Anywhere moisture can build up, mold can grow. This could be on the walls of your shower or in a basement. If the inspector finds serious mold issues, it’s best to have it analyzed, inspected properly and removed before moving in.

Radon – Radon is a radioactive material that is usually distributed injured surrounding a home. If the concentration is strong enough it can be a health hazard. If your inspector suggests an additional radon inspection, definitely have one done. If the radon is president and is of concern, it can be immediately remedied through a specialized company. Radon can also leak into your water if you haven’t artisan well. This is nothing to mess around with.

Lead Paint – Any home prior to about 1973 may have lead paint on the walls. Chances are it’s been painted over several times and unless you, your kids or your pets are chewing on paint chips, it’s pretty harmless. However, if homeowners know that there is lead paint in the house they must disclose this to a buyer.

Asbestos – This common material was used in homes for decades but is not popular today. It’s completely safe when undisturbed but if people try to remove it themselves it can be extremely dangerous. If the home has asbestos you can either choose to have it professionally removed or simply leave it alone, but it’s important to know if the home has it.

Additional inspections. One more thought on additional inspections, as we mentioned previously, home inspectors know a little bit about everything but if they suggest having an additional inspection by a professional certified and qualified in that area, take heed. This is extremely important and could save you thousands of dollars in the future. If there’s issues with the roof, foundation, electrical or plumbing, it’s important to get an additional inspection to verify the integrity and durability of the item.

For more information on home inspections or answers to any of your questions on homebuying throughout Sunset Beach contact our office today.

Cash it may be king when it comes to real estate but are there times where you might want to get a mortgage instead?

The real estate industry is quite volatile right now; home prices are up, inventory is down, and rates are slowly creeping upwards. Buyers might be scrambling to find a home, and even then they may be entering a bidding war.

Cash doesn’t always win in a bidding war, though. Terms, dates, and timelines can also drastically affect a seller’s decision on whether or not to accept an offer. A buyer might be offering cash, but if the terms do not fit into the seller’s timeline, a financed offer might be much better.

If you have cash to buy a house, you want to consider all the different costs, interest rates and pros and cons when it comes to the purchase of a home all-cash. It can make it much more attractive to sellers, especially in a competitive market but everything else has to line up for the seller as well.

We’ve had buyers that are well financed and put down a hefty down payment and have won one out in a bidding war against all-cash. Again, there are a lot of different factors involved. The financed offer promise to close within 25 days, our buyers had a substantial down payment and earnest money deposit, and there were no contingencies, and they even waived the home inspection. All that is very attractive to the seller, and of course, the seller still gets the full offer price.

Now, if the buyer had come with a financed offer contingent on the sale of another property, a two or three-month closing date, and strict contingencies as to home inspections and other items, a cash offer weaving all of those other details is much more attractive.

A cash offer may also allow the homeowner to sell the house more easily or even at a loss, regardless of market conditions. This is something that the seller should discuss with their listing agent before moving forward on a lowball cash offer. Cash offers can be a lot less than a financed offer but provide better terms that may be more attractive.

Obtaining financing can have significant benefits to a buyer. If they have a lot of cash and could pay outright, they may not want to tie up all that money in a real estate purchase. If you go with a mortgage, you can give yourself some flexibility with the money you do have.

Paying in cash also has tax implications. Mortgage interest payments are tax-deductible, which is very attractive to finance offers. This might be an advantageous way to finance the house due to the reduced tax obligation. It can also protect your money. If you use all cash to buy a house, then all of that liquid cash is wrapped up into a real estate purchase. You may not be able to turn around and sell it whereas if you are financing, someone else’s money is tied up and you can hang onto it a little bit longer before selling.

One thing is for certain if you decide to finance the purchase of the house you want to make sure that you can easily afford the principal payment, interest, homeowners insurance, property taxes and any other fees that may be tacked on to your monthly housing expense such as homeowners association fees or mortgage insurance. Talk to your real estate agent and your lender about the best options for the type of home you want to buy, especially if you have both cash and financing options on the table.

When applying for a home loan it can be quite astonishing that someone would loan you this astronomical amount of money but when you’re buying a home, $200,000-$500,000 is the amount of money most people will need to borrow in order to obtain the home. However, once you’ve been preapproved there are mistakes that people make that can lose them the loan. Make sure that once you are preapproved for you sat down and spoken with a lender you don’t make these severe mistakes that could cost you the chance to own a home.

#1. Overpaying for the house.

So, you are preapproved for $300,000. You find a home that’s priced at $260,000. However, because it’s a hot market you tend to pay a little bit higher in order to get the home. Your real estate agent might suggest an escalation clause, which will increase your offer price to a certain amount in specific increments up to a. This is only used if the seller receives other offers higher than your own. The problem comes when you offer is accepted and yet the appraisal does not match the price. If your offer gets accepted at $290,000 but the home is only appraised at $260,000, there’s $30,000 that, that although you have been approved for, the lender will not support loaning you that much money on a home that is not worth the value. You will need to make up the difference if you’re prepared to finalize the purchase on the house. If not, you may lose the home. Talk to your real estate agent about the best way to negotiate to verify that the home stays within the appraisal. Read more: Is it Ever OK to Overpay for Real Estate?

#2. Not understanding your loan commitment.

Prequalification and preapprovals are two different things. Lenders will immediately check your credit history but this does not require any documentation. Prequalification is not necessarily a thing. It is the estimated amount that you might be approved. In order to actually be approved lenders will ask for a variety of legal documentation including pay status, W-2s, bank statements and perhaps tax returns. This will be a more accurate verification process that will almost guarantee you the loan should nothing change between the time you apply for the loan and when the loan closes.

The problem with this is is that many borrowers misunderstand prequalification and pre-approval. Simply estimating how much you can afford is not the actual loan commitment. You want to make sure you understand how much you can afford by a preapproval letter. If you have more questions on the preapproval letter or need to speak to a lender in order to obtain one of these letters contact us today.

#3. Spending too much money before your loan closes.

If you like many people, you’ve saved for some time to make a down payment and you’ve done your due diligence in paying off credit cards and increasing your credit score, however, once you’ve been approved for the loan and get that preapproval letter one of the worst things to do is to put more on credit. This is not the time to rack up your credit cards, apply for a different loan, or spend large amounts of money. Lenders can run a last-minute credit check the night before closing and if the debt to income ratio is over the required amount, you could be denied your loan.

These are three simple things to be aware of when applying for a mortgage and buying a home. For more tips, browse our website and our blog or contact our office today to get started on the preapproval process or to view any current active listings for sale in Sunset Beach and surrounding areas.

Many sellers dread the home inspection. Things are moving along great; the contract is accepted, the buyer’s loan is preapproved and qualified, the appraisal is ordered, and then the title and home inspection are scheduled. This is where many sales thrive or die. What happens if the buyer has a laundry list of issues they want to be resolved after the inspection? The power lies on both sides of the coin and unbelievably, you have some control.

First, a home inspector should be unbiased when investigating construction, materials, and stability of a home. They should report accurately on anything questionable. After the inspection, the buyer needs to decide whether they should proceed or walk away.

Inspections are helpful for buyers by helping them to understand what they are getting into when they purchase a home since this is one of the largest investments made and is important to understand all the details of the property itself. Even with earnest money deposited to the Title Company, escrow or broker, this money can be returned if the buyer rejects the home inspection and terminates the transaction. The seller can also kill the deal.

The seller’s responsibility to the inspection report comes in three options: accept the report, agreeing to complete any repairs or by addressing any concerns; negotiate for any repairs; or reject the inspection altogether, thus terminating the transaction. It is important for sellers to remember that this is a real estate decision, not an emotional one. It may not be easy to curb a seller’s reaction when it could mean the completion or death of the transaction. If the home inspector finds very few problems, sellers are more likely to correct them for the benefit of the sale. If there are many small issues, the seller may feel the buyer is nitpicking and get frustrated with the inspection report. The buyer’s agent should inform the buyer that if they ask every little thing be fixed, it might only frustrate the seller. It is important to negotiate and consider the larger issues that may be hazardous or of serious concern as sellers are more likely to fix these issues.

All buyers, sellers and their agents need to discuss and negotiate the issues raised in the inspection report and what could make or break a deal. Both parties should consider if a deal should die over something as simple as patching a hole in a window screen. The biggest tip in the home buying process is to keep emotions out of the negotiation process. Getting emotionally involved, frustrated or even insulted, has been the demise of many real estate transactions.

To avoid losing out on a great deal, contact our office today. We can help you negotiate and close on the right house for you.

What our clients say

Jessica Lowery

I love working with Karen and Frank. They are honest, not pushy, and have your best interest in mind. They...

2015-05-12T20:51:52+00:00

I love working with Karen and Frank. They are honest, not pushy, and have your best interest in mind. They will also make you laugh! :) Love these two!!!

http://sunsetbeachandbeyond.com/testimonials/jessica-lowery/

Steve & Jean DeVito

“The Bakers treated us like family during our whirlwind weekend of looking at houses. Prior to our on-site visit to...

2015-03-16T20:17:46+00:00

“The Bakers treated us like family during our whirlwind weekend of looking at houses. Prior to our on-site visit to Sunset Beach they created a portal and populated it with properties that met our ever-evolving criteria. By time we arrived we had a good feel for what we could afford and what was available that met our criteria. The Bakers, especially Karen, were able to make sense of what we thought we were looking for and eventually matched us with a house that we ended up purchasing — Karen called it the “This is it” house and she was right. We are loving our 2nd home and appreciate how painless Karen and Frank made the process. All the paperwork was done seamlessly and quickly and the closing went off without a hitch. The Bakers do not believe in the hard sell — they gave us the knowledge we needed and the guidance we needed to make our dream a reality.”

http://sunsetbeachandbeyond.com/testimonials/steve-jean-devito/

Matt & Amy Carver

Amy and I have bought and sold four properties in the past twelve years. Both of you are the best...

2015-03-16T20:18:22+00:00

Amy and I have bought and sold four properties in the past twelve years. Both of you are the best realtors we have ever dealt with. Amy and I both felt we could trust you to look out for our interest. The level of service you provided was outstanding, from taking the trash out, helping the buyer with inspecting the irrigation system, dealing with our tenants, always being there if we needed to ask a question, providing constant updates on the market and always keeping us informed on the sale of our house. I think your next venture should be training other realtors, because both of you have mastered the art of providing excellent service. I will be sure to recommend the Frank and Karen team to anybody looking for a trust worthy, knowledgeable and top performing realtor. It was a pleasure working with both of you.”

http://sunsetbeachandbeyond.com/testimonials/matt-amy-carver/

Ernie & Carol G.

“Karen & Frank Baker are the best. They are very knowledgeable with the area & showed us many homes. When...

2015-03-16T20:18:50+00:00

“Karen & Frank Baker are the best. They are very knowledgeable with the area & showed us many homes. When we made up our minds which one we wanted, they got us the best deal on it. We were very satisfided with them. After the purchased was made & we moved in, they were still there to answer any questions or problems that we might of had. Like I said, they are the BEST.”

http://sunsetbeachandbeyond.com/testimonials/ernie-carol-g/

Dave & Rose

“Thanks again for all the time you spent with us, As overwhelming as it was, you two made it fun”

2015-03-16T20:19:23+00:00

“Thanks again for all the time you spent with us, As overwhelming as it was, you two made it fun”